At the very end of the year, it’s common to catch yourself thinking: is it worth investing in something? The answer depends on what you think regarding investing. For example, on December 23, Bitcoin showed stability, with timid variations that left the main asset of the market to remain in the range of US$ 16 thousand. It even had a slight drop of 0.64%.
The performance of crypto assets – in general – has not yet reacted to the results of economic activity in the United States. But they may have liked the positivity of international indices, such as the Gross Domestic Product (GDP), which came in above market expectations.
Furthermore, the expected growth was 2.9% for the third quarter of 2022 and was up 3.2%. In relation to the Price Index for Personal Consumption Expenditures (PCE), the increase was 4.7% once morest estimates of 4.60%. So is it worth investing in Bitcoin in 2023?
Let’s go by parts, first understand what cryptocurrencies are, then find out how the second half of the year was to understand if it’s really worth it! You can count on Renova Invest through advice that helps you invest with quality and profitability.
What we will see in this article:
What are cryptocurrencies?
In summary: it is the native asset of a blockchain network, where it is directly part of the blockchain on which it runs, also called native currency. Cryptocurrency comes from an independent digital system and thus allows users to send and receive transactions without intermediaries. Therefore, when carrying out a transfer, it is recorded in a ledger, which is digital, public and unalterable.
In addition, cryptocurrencies often have the following characteristics:
- Uses encryption to protect the network structure and system;
- They are decentralized and work through computer code;
- They are built on a proprietary blockchain.
In recent years, cryptocurrencies have gained space in investors’ portfolios and have attracted attention for being something completely new in the financial market. As time goes by, more people decide to enter this field, but it is utopian to say that they are not afraid. It is a new investment scenario with thousands of options. After all, what is the future of cryptocurrencies for the second half of 2022?
For context, the third week of August started out positively for cryptocurrencies. However, over the days, the price of bitcoin (BTC) plummeted by almost 10% and a good part of these losses were on Friday (19). This happened because of the Huobi exchange cryptocurrency, the so-called HUSD.
The stablecoin was not able to keep up with the massive liquidations of the last few days and with that, it lost its equivalence with the US dollar. In addition, even though it is considered a minor cryptocurrency, the history of Terra (LUNA) remains present in the memory of investors, since it helped to pressure the quotations of the largest currencies in the world.
Check out the performance of the top ten cryptocurrencies in the world here.
Bitcoin performance and main cryptocurrencies
The data refer to the end of December, more specifically to December 23, 2022, according to the Bitcoin Portal:
Is Bitcoin a good investment for 2023?
The low volatility of Bitcoin prices demonstrates that the asset may not conquer new prices, and the tendency is for it to remain at this pace until 2023. But not that this is discouraging, it might be an investment opportunity given the low level that the cryptocurrency is being negotiated.
It’s a chance to think regarding exposing yourself to risk, but it needs caution and care. The year ahead might be very positive for this asset class. Due to this argument that it is ‘undervalued’, evidence of how this drop has more to do with external factors than internal ones.
As every investment has its downside, there is a chance that Bitcoin will continue to fall. For 2023, the Federal Reserve is expected to continue raising interest rates and this makes the risky asset less attractive. A forecast from the Business 2 Community platform believes that the digital currency will rise once more in the coming years:
- BTC forecast for the end of 2023: $23,000
- BTC price for the end of 2024: $37,600
- BTC forecast for the end of 2025: $59,800
- BTC forecast for the end of 2030: $90,000
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